While hailing the increased allocation for infrastructure and road sector in the Union Budget, the tyre industry expressed concerns over exclusion of rubber and tyres in the list of items on which duty inversion has been addressed.

The Indian automobile industry started on strong note in fiscal 2017 with healthy growth across segments, especially Passenger Vehicles and Two Wheelers. Aided by favorable cost of ownership, reducing interest rates, gradual pick-up in demand from rural economy and slew of new model launches, the domestic Passenger Vehicle and Two Wheeler demand grew by 11% and 16% respectively, on YoY basis between April-October 2016. The benefits of higher disposable income owing to the roll-out of Read more..

Last year, we had several key global events including US elections, Brexit, and the Italian constitutional referendum, among others, which are likely to have a profound impact on the global economy in 2017. Some of the key risks and challenges posed for both developed and developing economies, including India, are: a) There is a growing expectation that the new US administration will reduce tax and significantly increase infrastructure spend, which will have a positive impact on growth. It is Read more..

The Union Budget continues to be a centerpiece of economic policy as it puts in place the architecture for a new Indian economy. It is the most awaited announcement of the year that paves the path to stimulate the growth prospects with significant policy announcements related to reforming the tax system, improving infrastructure, agricultural boost, manufacturing output and generating employment. With a stable interest rate regime and control over inflation, fiscal deficit and current account Read more..

Union Budget scheduled on 1st February 2017 has expectations soaring high from several sectors and one of these sectors is the Indian auto sector. The major expectation from the Budget is to help boost consumer sentiments, which is the need of the hour for the manufacturing sector in general. From what is being speculated so far, the government is likely to tread on a path to improve the disposable income, while also boosting the overall economy. This, in return, will enhance demand for Read more..

According to RBI data, 90% of all transactions in India are made with cash. A little over 80% of this cash became practically useless overnight after Rs1000 and Rs500 currency notes were demonetized on November 8 this year. This withdrawal of legal tender status of these notes came as a major blow to traders who rely mainly on cash for business transactions. Kashmere gate in old Delhi, one of Indias largest wholesale markets for auto parts, which is overcrowded on any usual day, wore a Read more..

The budget was somewhat on predictable lines.The allocation to infrastructure, railways, housing and defence for capital expenditure has the potential to substantially enhance manufacturing demand. While the allocation has increased, the structures for implementation seem to be what have existed. To that extent, the speed at which these allocations are converted into projects would be interesting to follow. Sudden, large increases in allocation would require conceptualising, tendering out and Read more..

The union budget has provided a major thrust on rural economy and the infrastructure spend. Increased target for agricultural credit allocation, irrigation and crop insurance are significant positives and would help reduce volatility in rural income. Increased allocation under MNREGA would strengthen social safety net in the rural economy. In line with expectations, the budget2017 didnt provide any benefits on the indirect tax front to the automobile sector on account of implementation of GST Read more..

Dheeraj Hinduja, chairman at India’s second largest truck maker Ashok Leyland, prefers a low profile, but with managing director Vinod Dasari leaving at the end of the month, he says he’s become more “hands-on”.